Financing on the Mexican Stock Exchange (BMV) contracted 4% between the months of January to November of this year when compared to the same period in 2020 and ran for another year without holding an Initial Public Offering (IPO) of shares.
According to a presentation of the stock market, during the first eleven months of this 2021, a total funding for 306,623 million pesos was channeled through 1,160 issues of the different financial vehicles, such as short and long-term corporate debt, subsequent issuances of shares, as well as Energy and Infrastructure Fibers, Development Capital Certificates (CKD) and Investment Project Certificates (Cerpis).
The capital market had the lowest performance in terms of financing, closing the period with a 31% drop, registering nine issues for a total of 28.904 million pesos, which contrasts with the six placements for 42.039 million pesos reported. from January to November 2020, a year when the pandemic affected stock exchanges locally and globally.
It stands out that this 2021 will pass like another year without seeing a new company placing shares in the BMV. The last IPO was in November 2017, when Grupo México Transporte debuted, achieving a collection of 19,000 million pesos.
The real estate investment trust market (fibers) was also deserted, as well as the issues of SPAC or Special Purpose Acquisition Company.
While a Fibra E was issued for 22,159 million pesos, four CKDs for a total of 1,160 million pesos and two Cerpis for 657 million pesos.
Debt also in negative
The short and long-term corporate debt market with a total financing of 277,719 million pesos, slightly 0.4% below that financed between January and November 2020.
What was financed through long-term bonds fell 5% in the comparison period, with 53 offers for a total of 111,874 million pesos; while in the short term 158,054 million pesos were raised with 1,024 placements.
This amount was 4% higher than in the same months of 2020, with companies from the automotive and financial sector who most demanded this type of financial instrument.
“The trend is very good in the debt market, which shows that the economy is recovering and the interest by the different issuers to obtain resources to take advantage of this economic recovery that we are seeing in some investment plans is materializing,” said José Oriol Bosch, CEO of the BMV, in a recent conference.
However, in its presentation, the administration of the Mexican Stock Exchange highlighted that in this last month of 2021 there will still have been 90 short-term debt issues for 14.370 million pesos and in the longer maturity issues it is expected to close with an amount total of 21,500 million pesos.
This year, the growth registered in the issuance of thematic bonds or ASG (under the labels green, social, sustainable and linked to sustainability) stands out, reaching 38 placements for 87,000 million pesos.
According to the BMV, this amount represents 28.38% of everything that was financed in the stock market between January and November of this year.
“At the end of September we had the first bond linked to sustainability with which the issuer commits to certain ESG objectives and there is even a change in the yield offered to the investor in case of not meeting them. It is a very important evolution that we are seeing in the very short term. The issuers have changed, they are not only reporting financial information, but also non-financial information, ”said José Oriol Bosch in his forum held this Tuesday.
New stations in the SIC
This year, in the International Quotation System (SIC), the platform where foreign securities are listed, it added 302 new securities, of which 200 are shares of foreign companies and 102 ETFs or Exchange Traded Funds.
With the new securities listed in this period, the so-called global market of the Mexican Stock Exchange has reached a total of 3,004 listed securities, according to information from the stock exchange itself.
Reference-www.eleconomista.com.mx